district of columbia

Update 8/11/11: While maximizing solar in DC shifts $267 million in electricity payments from the utility to local solar panels, the cumulative electricity cost savings over 25 years amounts to $1.6 billion for ratepayers by shifting to solar power.

For many years the citizens of Washington, DC, struggled for the basic right to elect their own leaders.In 2011, they should use their political home rule to maximize the economic benefits of local renewable energy with “electricity home rule.”

Currently, residents and businesses in Washington spend over $1.5 billion dollars a year on electricity.According to a study of DC’s energy dollars by the Institute for Local Self-Reliance, 90% of that amount (largely unchanged since the 1979 study) – $1.4 billion – leaves the city.

With rooftop solar power, DC residents could keep more of those electricity dollars at home.

But maximizing local electricity generation with rooftop solar has enormous additional economic benefits.To fill District roofs with solar panels, residents would need to install just over 1,800 megawatts (MW) of rooftop solar.The National Renewable Energy Laboratory estimates that every megawatt of solar generates $240,000 in additional economic activity, making the economic value of maximizing solar energy self-reliance close to $432 million.

It could go even higher.

A previous NREL study of the value of local ownership of renewable (wind) energy found that it multiplied the economic benefits from 1.5 to 3.4 times.If D.C. residents maximized local ownership of solar, it could have an economic value as high as $1.5 billion, equivalent to the District’s total electricity bill.

The cost of going solar is minimal.At current best prices for solar PV (around $3.50 per Watt installed) and with the benefit of the 30% federal Investment Tax Credit, solar PV can deliver electricity to the District for 16.1 cents per kilowatt-hour.After seven years at current electricity inflation rates (3% per year), solar PV – with zero fuel cost or inflation – would be less expensive than retail grid electricity (currently 13.3 cents per kWh).And unlike the $267 million currently sent out of the district for that electricity, all of it would be kept at home.

Thiswas the first study to track the flow of energy-related dollars through an urban economy and the impact on this flow from an aggressive energy efficiency and solar energy initiative. The study concluded that 85 cents of every energy dollar left the city, a far higher leakage than from any other household expenditure. The study also estimated the rooftop space available in DC for solar and the economic impact of energy efficiency.… Read More